US Federal Reserve’s comments trigger bearish trend

New Delhi, August 29

Advertisement

In line with global trends after hawkish comments from the US Federal Reserve, equity markets tumbled in tandem with the rupee in early morning trade but recovered to recoup some of the losses by the close of the session.

Surprisingly, the biggest losers were IT, tech, banking and Ambani group stocks which were among the favourites for foreign institutional investors (FIIs) after they made a comeback to the Indian market in July. Stock exchange data showed that FIIs were net sellers on Monday, offloading shares worth Rs 51.12 crore.

The Sensex lost 1,460 points in early trade but finally fell by 861.25 points at the end of the day. The Nifty also fell 246 points to 17,312.90.

Markets in Asia such as Seoul, Tokyo and Hong Kong fell while Shanghai inched higher. In the US and Europe too, a bearish trend was being witnessed.

Meanwhile, the rupee after hitting an all-time low recovered some of its losses to settle at 79.91 against the US dollar. It had depreciated to 80.15 against the US dollar in intra-day trade.